The Center has approved the major environmental and coastal control zone for Gautam Adani-led Adani Ports & Special Economic Zone Ltd (APSEZ). The action post the approval would involve investment of INR 45,000 crore. The aim is to multiply the volume of its flagship port in Mundra to 514 million tons.
This might help APSEZ’s argument when it asks the Gujarat government to extend the port’s concession tenure. This is set to expire in 2031 after 30 years. As an element of the expansion of the Waterfront Development Plan spanning 3,335 hectares at Mundra port, APSEZ applied to the Expert Appraisal Committee (EAC) attached to the Ministry of Environment, Forests, and Climate Change.
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Mundra – Largest commercial port in India
More than 25% of total cargo volume in India were handled by Mundra. Thus, it is the largest commercial port in India. The top container port dealt with 179.6 mt of cargo in FY2024. The port is situated in the Kutch area of Gujarat. The port is now approved to handle 225 mt of cargo annually, including 9.5 million twenty-foot equivalent units (TEUs). It also has clearance for its environmental and coastal management zone.
Projection for 2025
In its volume projection for the fiscal year that started in April, APSEZ stated that it is anticipated to surpass the 200 mt threshold in cargo handling in FY25. It will be the first port in the nation to do this.
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Upper limit for port capacity expansion
Generally speaking, ports and terminals should operate at a capacity utilisation of 70% or higher to avoid congestion and productivity problems. After that, efficiency begins to decline and delays begin to develop. The port has been growing by double digits over the past few years, putting it on track to reach its full rated capacity soon. The increase in capacity will handle cryogenic, liquid, and gas freight as well as multipurpose cargo.
Moreover, it manages the ports of Haifa, Israel, Dar es Salaam, Tanzania, and is currently constructing a box terminal at the port of Colombo.
About Author
This article is written by Manasi Gawali, who is an Economics graduate from St. Xavier’s College, Mumbai. She is passionate about economics and finance. She enjoys research, writing poems, music, and travel.
